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Coal unit's cost jump leads drop
24/8/2005 8:55

Leo Zhang/Shanghai Daily news

Energy companies sparked a falloff in Shanghai shares yesterday after the Yanzhou Coal Mining Co posted higher first-half costs, fanning concern that earnings might be depressed.
The shanghai Composite Index, which groups yuan-denominated A shares and foreign-currency B shares, eased 0.75 percent to 1,149.96.
The a-share Index ebbed 0.74 percent to 1,208.53, while the B-share Index retreated 1.11 percent to 65.01.
"Coal miners may find controlling costs a big task to handle during their expansion," said Lu Chengde, a Guosen Securities Co trader. "Besides, there's still uncertainty over future coal prices."
Yanzhou coal, the country's fourth-biggest producer of the energy resource, dived 3.16 percent to 6.44 yuan (79 US cents).
The company said its coal production costs jumped 42 percent to 142.84 yuan per ton in the first six months.
Total coal sales dropped 12.2 percent to 16.6 million tons because delays in relocating villages overlying coal deposits affected production.
Analysts at Credit Suisse First Boston and CLSA posted an "underperform" evaluation for Yanzhou Coal.
Zhenzhou coal Industry & Electric Power Co lost 2.33 percent to 2.93 yuan while Kailuan Clean Coal Corp withdrew 2.2 percent to 6.67 yuan.
Jiangsu expressway Co, the biggest Hong Kong-listed toll road operator in China, slipped 0.57 percent to 6.92 yuan. The company's stock was downgraded to "neutral" by CSFB yesterday as traffic volume may drop.